LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session March 21, 1995 TO: Honorable David Sibley, Chair IN RE: Senate Bill No. 702 Committee on Economic Development By: Truan Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on Senate Bill No. 702 (relating to residential fire protection sprinkler systems and to an insurance premium discount for the use of such a system) this office has determined the following: The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. The bill would amend the Insurance Code to allow residential insurance policyholders with fire protection sprinkler systems to qualify for a premium reduction with a certified inspection. The bill would authorize the Commission on Fire Protection to create a licensing or registration program for fire protection sprinkler system contractors and the Commissioner of Insurance would establish the premium reduction amount. Implementation of the provisions of the bill could result in fiscal implications for the Commission on Fire Protection, but the implication cannot be estimated because the number of potential licensees are not known and the licensing fee would be established in rule adoption proceedings. However, the Commission would not anticipate significant fiscal implications. No significant fiscal implication to the State is anticipated. No fiscal implication to units of local government is anticipated. Source: Commission on Fire Protection, Department of Insurance LBB Staff: JK, RM, RR